(Alliance News) - Next Re SIIQ Spa reported Tuesday that it closed 2023 with a loss of EUR9.4 million compared to a profit of EUR350,000 in the previous year.

The loss reflects the change in the fair value of assets in the portfolio negative by a total of EUR7 million as a result of the adjustment of asset values as estimated by the independent expert; this change was mainly driven by the general increase in market rates. The negative result also reflects the impact of the write-down of deferred tax assets of EUR200,000.

Consolidated Ebitda, which represents the margin before the result of financial management, asset adjustments and adjustments, and taxes, is negative EUR640,000 and incorporates not only the margin of net rental income of EUR5.1 million from EUR4.3 million in 2022, but also personnel costs of EUR2.7 million and overhead costs of EUR2.9 million. Personnel costs and overhead costs incorporate the economic effects, amounting to approximately EUR2.2 million, of the settlement agreements with former top management resolved by the board of directors on March 21, 2023.

Consolidated financial debt increased by EUR3.9 million compared to December 31, 2022. The change is mainly attributable to the decrease in financial debt, following early repayments of bank loans and real estate leases totaling EUR6.3 million, which resulted in a corresponding decrease in liquidity, and to the increase, due to the recognition of interest accrued during the year of EUR1.3 million, in financial debt related to credit facility agreements provided by the controlling shareholder, CPI Property Group SA, for which the company has the option to repay at maturity in 2026, and financial outflows related to settlement agreements.

Consolidated net loan to value is 44% and increases against the above represented consolidated financial debt. The value of Investment properties decreased by about 4% compared to December 31, 2022, mainly as a result of the fair value adjustment of the properties assessed by the independent expert.

The board also approved the 2024-2028 business plan, which envisages significant growth in size achieved through capital increases in kind, consistent with the amount of the proxy to increase share capital; rotation of the real estate portfolio; and repayment of financial debts in accordance with current contractual conditions.

"The implementation of the guidelines will enable Next Re to present itself at the end of the plan period with economics, dimensional and profitability conditions that will make it an instrument capable of generating value for stakeholders," the company said.

Next Re's stock closed Tuesday up 0.6 percent at EUR3.18 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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